System reliability is very important for distribution networks such as utilities. Variability in load is an important factor that undermines system reliability. While utilities maintain load forecasting models and techniques, the actual system load is variable and changes continuously. There are limited methods that utilities can use to respond to variations in load or system contingencies. This is especially true at the distribution level. Methods to respond to distribution contingencies typically involve opening circuits, which leads to indiscriminant load shedding.
Demand response solutions are available that allow for the reduction of energy demand in response to peak loading conditions. The use of demand side resources to respond to contingencies on electric power systems is typically limited to bulk load shedding schemes (e.g. rolling blackouts). More specifically, bulk load shedding and/or reducing voltage (brownouts) are the current methods for dealing with overloaded circuits or transformers at the distribution level. In either method, there is significant impact for all customers in the affected area. There are limited demand response programs for large industrial and commercial customers who are willing to reduce their load on short notice to relieve overload conditions, but these are typically more able to respond to transmission level faults than distribution level faults.
Demand response solutions for distribution level contingencies, especially in residential areas, are difficult to manage because the network structure changes dynamically. This makes it difficult to identify customers who can respond to a particular contingency. While the utilities have provided some customers with direct control devices for certain loads, such as heating or cooling devices, pool pumps, and so on, the utilities are unable to efficiently and effectively manage these devices over the distribution network to respond to specific network needs.
For these and other reasons, there is a need for the present invention.